Who Gets Working Credit
| Payment | Maximum credits |
|---|---|
| JobSeeker Payment | 1,000 |
| Youth Allowance (job seeker) | 3,500 |
| Parenting Payment | 1,000 |
| Disability Support Pension | 1,000 |
| Carer Payment | 1,000 |
Services Australia, Working Credit, page updated 3 July 2026, read 23 September 2026.
You can’t use Working Credit once you reach Age Pension age (pensioners use the Work Bonus instead: see the Age Pension income test calculator). Full-time students and apprentices on Youth Allowance, Austudy or ABSTUDY have the Income Bank instead (student income test), and Special Benefit isn’t eligible.
How Working Credits Build Up
Each fortnight your total income is under $48, you earn $48 minus that income in credits. Income here means paid work and investments, not Centrelink payments. The DSS guide works it out daily, so a change part-way through a fortnight is pro-rated.
| Income in the fortnight | Credits earned |
|---|---|
| $0 | 48 |
| $20 | 28 |
| $40 | 8 |
| $48 | 0 |
| $100 | 0 |
With no income you reach 1,000 credits in 21 fortnights (3,500 takes 73).
How Credits Offset Your Income
When you have employment income, the credits used in a fortnight are the smallest of (DSS 3.1.11.30):
- your employment income (credits can’t offset investment income);
- your total income above the income free area ($150 a fortnight for JobSeeker); and
- your balance.
The DSS guide’s own example: John has 500 credits and earns $300 in a fortnight on JobSeeker. He uses 150 credits ($300 − $150), so only $150 is assessed (within the free area) and 350 credits remain.
With a full 1,000 credits and a job paying $1,000 a fortnight, a single JobSeeker recipient (20 September 2026 rates) gets:
| Fortnight | Credits used | JobSeeker with credits | Without credits | Credits left |
|---|---|---|---|---|
| 1 | 850 | $824.90 | $325.50 | 150 |
| 2 | 150 | $415.50 | $325.50 | 0 |
| 3 | 0 | $325.50 | $325.50 | 0 |
Income test only, single with no children, no other income. Your payment is also subject to the assets test.
If your job would otherwise stop you qualifying (for example, you’re no longer unemployed), you’re still treated as qualified while you use up your credits, so full-time work doesn’t end the payment on day one. It won’t save a payment you lose for other reasons, such as the assets test.
Couples
If you and your partner both get an allowance such as JobSeeker, each of you builds and uses credits on your own income. If either of you gets a pension, credits are built and used on half your combined income (DSS 3.1.11.20). A partner’s income over the partner income limit still reduces your payment directly: credits don’t offset it.
When Your Payment Stops
Once your income is over the cut-off and your credits are gone, the payment stops. You may keep your Health Care Card or Pensioner Concession Card, and some other benefits, for up to 12 fortnights. If you get Family Tax Benefit, give Centrelink a family income estimate so it continues. Check what the job will pay with the take-home pay calculator.
Related Calculators and Guides
- JobSeeker Payment Calculator: your rate after the income test
- Centrelink Income Test: free areas and tapers for every payment
- Parenting Payment Calculator
- Carer Payment Calculator
- Gross vs Net Pay: Centrelink counts your gross wages
Frequently Asked Questions
Working Credit questions and answers
What is Centrelink Working Credit?
Working Credit lets you keep more of your income support payment when you start work. You build credits in fortnights when your income is under $48, and each credit then offsets $1 of employment income, so your payment isn't reduced until the credits run out.
How do you build Working Credit?
You earn credits in any fortnight your total income (work and investments, not Centrelink payments) is under $48: $48 minus your income, so up to 48 credits a fortnight. It happens automatically when you report your income.
What is the maximum Working Credit balance?
1,000 credits for JobSeeker Payment, Parenting Payment, Disability Support Pension and Carer Payment, and 3,500 for Youth Allowance as a job seeker. With no income it takes 21 fortnights to reach 1,000.
How are Working Credits used?
When you have employment income, Centrelink uses credits to cancel out the income above your income free area ($150 a fortnight for JobSeeker). The amount used each fortnight is the smallest of your employment income, your income above the free area, and your balance.
Can students get Working Credit?
No. Full-time students and apprentices on Youth Allowance, Austudy or ABSTUDY Living Allowance have the Income Bank instead, which works in a similar way.
What happens when my payment stops because I'm working?
Once your income is over the cut-off and your credits have run out, your payment stops. You may keep your concession card and some other benefits for up to 12 fortnights.
How we worked this out▼
Accrual is $48 minus fortnightly income, capped at the maximum balance. Credits used each fortnight are the smallest of employment income, income above the income free area, and the balance, as the DSS Social Security Guide sets out. JobSeeker is then worked out on the remaining income with the same income test and dated rates as our JobSeeker calculator. We calculate by fortnight; Centrelink works daily, which can differ slightly when income changes mid-fortnight.
Services Australia’s own short example deducts credits from the whole of a person’s wages; the DSS guide (which decision-makers apply) deducts them only from income above the free area, so real balances last longer than that example suggests. General information, not advice.
Sources & References
- 1Working Credit (QC 29721)— Services Australia
- 2Social Security Guide 3.1.11.10 – Recipients eligible for working credit— Department of Social Services
- 3Social Security Guide 3.1.11.20 – Working credit accrual— Department of Social Services
- 4Social Security Guide 3.1.11.30 – Working credit depletion— Department of Social Services
Last verified: 23 September 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
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